Answer the following statement(s) true (T) or false (F)

Question

1) It is a challenge for companies to be both big and small to capitalize on the advantages of each.
2) A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with value subtracted at each step.
3) Reengineering answers the question "If you were the board of directors, how would you like us to operate?"
4) Usually, companies with higher volumes of products tend to offer more varieties.
5) In a lean manufacturing organization, the emphasis is on cost, efficiency, and hierarchy.

Answer 1

1. TRUE
Explanation: Small is beautiful for unleashing energy and speed. But in buying and selling, size offers market power. The challenge is to be both big and small to capitalize on the advantages of each.

2. FALSE
Explanation: A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.

3. FALSE
Explanation: The goal of reengineering is to revolutionize key organizational systems and processes to answer this question: "If you were the customer, how would you like us to operate?" The answer forms a vision for how the organization should run. Managers then make decisions and take actions accordingly.

4. FALSE
Explanation: As volume increases, product variety usually decreases. Companies with higher volumes and lower varieties than a job shop use large batch, or mass production, technologies.

5. FALSE
Explanation: In a lean operation, the emphasis is on quality, speed, and flexibility more than on cost, efficiency, and hierarchy. With a well-managed lean production process, a company can develop, produce, and distribute products with half or less of the human effort, space, tools, time, and overall cost.